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Restore takes steps to address margin erosion in its shredding business

The share price was shredded as an otherwise "steady as she goes" AGM statement revealed that Restore Datashred, the shredding business, delivered operating margins in the first quarter that were lower than budgeted
Paper shredding
The news about the shredding business is likely to introduce a downbeat note to the AGM

Office support services group Restore Plc (LON:RST) said its shredding business saw its margins slip in the first quarter.

Restore Datashred, the shredding business, delivered lower operating margins than budgeted in the first quarter and steps have been taken to improve margins in the second quarter.

READ: PHS Data Solutions acquisition buoys Restore’s full-year results

Despite this setback, the 2018 trading year has started satisfactorily and Restore’s expectations for the year remain unchanged.

At the group’s annual general meeting today, the chairman, Martin Towers, will tell shareholders the group looks forward to delivering another year of progress.

In Restore’s Document Management division, the core records management business continues to trade well.

Restore Digital, the scanning business continues to trade satisfactorily, while Restore Harrow Green, the office relocations business, continues to trade well.

Restore Technology, the group’s information technology life-cycle services business continues to build on last year's successful acquisition of The ITAD Works, Towers said.

Shares in Restore tumbled 36p to 514p in the first hour of trading.

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